Next-generation solution for accounts

payables invoice recording based on Machine

Learning and AI capabilities.
By Suresh Venkatachalam
Contents

Objective

P2P Process

Supplier Invoices Processing

Making it happen

Summary

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Objective – Challenge Statement

The Accounts Payables department in any organization often grapples

with systematically processing invoice data in large volumes. This
crucial yet underrated task needs to be looked at from the lens of
efficiency in a business setup. Manual entry of invoices not only
makes the process sluggish; it is also prone to human errors and
unnecessary delays including short payments. This also then requires
the team also to make adjustment transactions to correct the short
payments, which automatically impacts efficiency.

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AP Invoices Processing

Vendor Read through Enter Match them Approve

Invoices the details – manually with PO Invoices
Received by identify invoice by
AP Team supplier, PO invoice into
ref, Invoice #, the System
date, due
date,
amount, etc.
Time Consuming, prone to errors

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The Solution Proposed
Intelligent Document Recognition
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Oracle IDR (Intelligent Document Recognition)
Oracle Fusion offers a feature called Intelligent Document Recognition (IDR) that
uses machine learning and artificial intelligence to automate invoice processing,
specifically targeting accounts payable departments.
✓ Function: IDR tackles the time-consuming and error-prone task of manually
entering invoice data.
✓ Benefits:
✓ Speeds Up Processing: Automates invoice lifecycle, reducing processing time.
✓ Boosts Accuracy: Reduces errors by automatically capturing invoice data.
✓ Improves Efficiency: Eliminates manual data entry, freeing up staff for other tasks.

✓ Technology: Leverages Machine Learning and AI for intelligent data extraction

from invoices.
In essence, Oracle Fusion's IDR is a smart document reader that streamlines invoice
processing for businesses.
Business Impact

In many organizations, present practices result in delays in paying the suppliers on time. Apart from that,
the probability of slip-ups in manually entering data is high. All of this severely impacts the business in
terms of cost and time—two major factors determining the competency of the organization. The back-and-
forth because of error also impacts the brand-value of the setup. More importantly, it severely strains the
organization's relationship with its suppliers. That is perhaps the last thing a company would want!

Thus, an intervention in this domain by emerging technology of Artificial Intelligence and Machine learning
is the need of the hour. Multiple studies have pointed out the link between an organization's growth and its
integration with next-generation technologies. Automation, in particular, improves the speed and accuracy
of the process and provides solutions that otherwise were not possible even a decade ago.

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Business Impact
Problem is mitigated by Oracle IDR (Intelligent Document Recognition) Solution. This digital transformation
offers you a fully integrated intelligent payables invoice recognition solution. And provides a seamless user
experience, automating the entire invoice lifecycle from document capture, recognition, and routing to
invoice entry, approval, and payment. Oracle IDR is a Solution based on Machine Learning / AI capabilities and
makes the redundant tasks which consumed time and added to cost redundant.

Oracle IDR’s Key Business Values:

• Reduces invoice process cycle times.
• Lowers invoice processing and storage costs with less manpower involved.
• Promotes the idea of touchless payables invoice processing and automation.
• Encourages Accounts Payables team to spend their time on useful data analytics like spending trends with
Suppliers, etc. and get more meaningful reports and insights for the top management.
• Improves the visibility throughout the invoice processing cycle.

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IDR – Intelligent Capture – Integrated – Out of the box Solution

Reduces Lowers Improves Promotes

Invoice Process & Visibility the idea of
Process Storage throughout TOUCHLESS
time Cost cycle Payables
invoice
processing

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The Process

Email Scanned Images

Route Invoices

Edit Invoices

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Differentiators of the IDR feature
Machine Learning Capability: The Oracle IDR solution is designed to learn, and it stores the learning based on
interactive user experience. Example: If Invoice # is not recognised from a certain field (Reference #, etc.)
from invoice image and the user enters the invoice # on AP invoice in Oracle via Interactive Viewer, IDR will
“learn” that going forward (i.e. from a particular vendor, it needs to recognize “Reference #“as Invoice
number in Payables.). This helps significantly to improve the invoice recognition rate going forward.

Tax Amount Recognition from Invoice Image: Oracle IDR is designed to recognize the tax amount from the
invoice image. Preference could be provided to vendor charged tax vs Fusion Tax engine calculated tax when
determining the tax amount on invoice. Fusion Tax engine calculates the taxes but ensures that the calculated
amount is set exactly to the amount recognized from the imported invoice document (invoice image). This
helps to reduce the manual intervention of correcting/overriding the tax amount on AP invoice. And ensures
that you do not short-pay the vendor and improves the relationship with your vendors.

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Points to consider

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